Most baby boomers can’t afford assisted living and are weighing on the housing market by staying in their homes, ‘Oracle of Wall Street’ says

• While Baby Boomers are collectively seated at $ 75 trillion in wealthIt is not distributed equally, which means that many cannot move and instead stay in their homes. That weighs the housing market by preventing the inventory, according to Wall Street's leading analyst Meredith Whitney.

Baby Boomers are dragging the housing market because most are unable to move to their homes, according to Meredith Whitney, the “Oracle of Wall Street” predicting the great financial crisis.

In a Interview with Bloomberg TV On Wednesday, he said that many Americans who cashing borrowed against their homes, and 44% of home-equity loans were taken by seniors, “who is undoubtedly. It's crazy, isn't it?”

This is contrary to the common narrative of baby boomers sitting in the vast amount of wealth that has accumulated in their lives, which has eased the uninterrupted economic expansion and stock market boom.

As a result, seniors with a lot of money have an edge in the tight housing market, which costs 42% of all homebuyers, while millennials cost 29% despite the younger generations in the main year of purchase.

But while most consumers are boomers, that doesn't mean that most boomers have a giant pile of cash.

“I split it into different cohorts,” Whitney said. “So the senior everyone thinks' The Boomers have all this money – that's a small part. The seniors are living paycheck to pay.”

To ensure, boomers are together -sa $ 75 trillion of wealth. But that is not evenly distributed, and Whitney estimates that only one of 10 seniors can afford facilities that have helped.

As a result, many are forced to stay and age in place, he added. .

“This is one of the problems with the inventory of housing,” Whitney told Bloomberg. “They stayed in their houses longer because they couldn't move.”

Forecasting unemployment for 2025: 6%

Meanwhile, he hopes the economy is slow in the midst of President Donald Trump's trade war, especially in retail and hospitality sectors, and predicted that unemployment rates will rise to 6% through this autumn, from the current level of 4.2%.

It was still below 10% high that the unemployment rate hit during a great financial crisis, and Whitney could not see the similarities between the economy today during the crisis.

Part of the reason is because banks are better capitalized now than to come back then, when sub-prime mortgages weigh on sheets of banks balance.

But he sees a “gentle, medium” backwards that Wall Street is not yet price.

“Large banks are not involved today, but the consumer is already struggling and still struggling. And it will translate into work losses,” Whitney said.

This story was originally featured on Fortune.com